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Definitions
Business Activities
Accounting Equation
Journal Entries
Adjusting Entries
100
The accounting equation.
What is assets = liabilities + stockholders' equity?
100
Purchasing supplies on account.
What is an operating activity?
100
Receive a loan from the bank.
What is increase assets, increase liabilities?
100
Purchase a storage building by obtaining a loan.
What is debit buildings, credit notes payable?
100
Adjust for a portion of rent expiring at the end of the month.
What is debit rent expense, credit prepaid rent?
200
Transactions involving the purchase and sale of 1) long-term resources and 2) any resources not directly related to a company's normal operations
What are investing activities?
200
Selling shares of common stock.
What is a financing activity?
200
Pay employees salaries for the current period.
What is decrease assets and decrease equity?
200
Provide services on account to customers.
What is debit accounts receivable, credit service revenue?
200
Adjusting for using up a portion of your supplies on hand.
What is debit Supplies Expense, credit Supplies?
300
The principle that we recognize expenses in the same period as the revenues they help to generate.
What is the matching principle?
300
Purchase equipment necessary for giving golf training.
What is an investing activity?
300
Receive cash from customers for services provided in the current period.
What is increase assets and increase equity?
300
Repay money from amount borrowed.
What is debit notes payable, credit cash?
300
Accounting for one month of depreciation.
What is debit Depreciation Expense, credit Accumulated Depreciation?
400
When a company has incurred an expense but hasn't yet paid or recorded an obligation to pay.
What is an accrued expense?
400
Pay interest on a bank loan.
What is an operating activity?
400
Purchase equipment by paying cash.
What is no effect?
400
Receive cash in advance for services to be given next month.
What is debit cash, credit unearned revenue?
400
Paid for Insurance at the beginning of the year. Adjusted for one month of usage.
What is debit Insurance Expense, credit Prepaid Insurance?